SPE15010 - Duty management and closing stock balance systems: overview

Note: This manual is under review following Brexit and is likely to be withdrawn. If there is anything within this manual you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know. Please check the other guidance available on GOV.UK from HMRC.

This Section provides a brief explanation on what a duty management system is and provides details of one type, which uses the closing balance method. If you require further advice on whether the system being used meets the requirements for the customs warehousing arrangements contact the Customs Warehousing Unit of Expertise (UoE).

It should be remembered that, in order to comply with UK legislation for NI, the overarching criteria that must be met before any type of duty management system is authorised is that it:

• allows a full audit of the customs warehousing arrangements and that if required it is possible to carry out physical examinations and that any documentation for release to free circulation can be related to the goods
• together with the commercial stock records it can be considered to contain all the relevant information necessary for the operation, validation and integrity of the customs warehousing arrangements, and that this can, and has been, tested
• is able to identify goods for which a tariff preference/quota or licensing restriction applies and ensure that the appropriate certificate/license is available prior to removal of the goods to free circulation.

Note: Northern Ireland (NI) customs authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979.